Back in the chips

Kenneth Bridges

Journal of the Asia Pacific Economy, 1996, vol. 1, issue 2, 253-273

Abstract: The early 1990s witnessed the reversal of dominance in the world computer market. This article examines the process by which the US overtook Japan. It identifies five interrelated factors that contributed to the re‐emergence of the US as the leading supplier of semiconductors. These are: structural changes in the US computer industry, non‐intrusive, but pro‐industry, government interventions, superior performance of the US firms in strategic alliances and R & D, interplay of software and hardware, and favourable economic conditions in the US. In contrast to a regimented and memory based education system of Japan, the more open education system which encourages critical thinking have helped the US to stay ahead of the competition at the leading edge of technology. Likewise less centralized government intervention induced spontaneous inter‐firm cooperation that led to strategic alliances crucial for their success. The paper maintains that the US lead in the world computer market will remain into the twenty‐first century.

Date: 1996
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DOI: 10.1080/13547869608724589

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